INVESTOR RELATIONS PRESENTATION
Bietigheim-Bissingen, September 2017
www.durr.com
Corporate Communications & Investor Rela...
2© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
DISCLAIMER
This publication has bee...
3
AGENDA
1. Executive Summary
Our five divisions2.
Group strategy3.
Group financials, markets and outlook4.
© Dürr AG, CCI...
Worldwide leading supplier of efficient production
technologies with outstanding digital expertise. Major
customer groups:...
Market shares between 30 and 60% in different machinery
and engineering activities
Strong emerging markets presence with
4...
6
AGENDA
1. Executive Summary
Our five divisions2.
Group strategy3.
Group financials, markets and outlook4.
© Dürr AG, CCI...
Paint and
Final Assembly
Systems
• Incoming orders
€ 1,094 (1,126) m
• Sales
€ 1,140 (1,365) m
• EBIT
€ 77 (100) m
• Opera...
8
2. MARKET SHARE DÜRR/COMPETITORS1
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
...
Turn-key paint shops for the automotive industry (OEMs, suppliers)
Final assembly systems (e.g. conveyor equipment, contro...
High-tech systems and software for automated paint application, glueing
processes and seam sealing (e.g. robots, atomizers...
Application products: components & automated paint solutions
Complete range of application products for general industry (...
12
2. PAINT BUSINESS1
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
BUSINESS DRIVE...
Incoming orders increased by 75% within 8 years, mostly due to higher demand in brownfield & service business
13
2. PAINT ...
Drivers: energy prices, regulation, environmental issues
Customer split: 25% automotive; 25% chemistry, petrochemistry,
ph...
High market shares in all businesses
Positioned globally with a high degree of localization
Strong footprint in China with...
Filling
Assembly & testing
Balancing
16
2. MEASURING AND PROCESS SYSTEMS
Three strongly performing machinery niche players...
Product range from stand-alone machines through to complete,
automated production lines for efficient woodworking
Major cu...
18
2. WOODWORKING MACHINERY AND SYSTEMS
FOCUS program progressing well, targets conservative
© Dürr AG, CCI, Investor Rela...
19
2. WOODWORKING MACHINERY AND SYSTEMS
FOCUS 2017: Shifting gears from “Fix the house” to “Innovation”
„Fix the house“
20...
20
AGENDA
1. Executive Summary
Our five divisions2.
Group strategy3.
Group financials, markets and outlook4.
© Dürr AG, CC...
21
3. DÜRR STRATEGY 2020
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
Dürr strate...
20%
8%
28%3%
41%
Invest Energy Personnel Service Material
22
3. STRATEGY
Innovation: R&D efforts focused on tangible custo...
• e.g. iTAC.IoT.Suite, HOMAG-
tapio-platform, Human Robot
Collaboration (HRC)
• e.g. predictive maintenance,
documentation...
24
3. STRATEGY
Innovation: digital@DÜRR
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2...
First IIoT platform especially for the mechanical/plant
engineering sector
Goal: Establish ADAMOS as industry standard
Hig...
LOXEO and tapio: market places our customers enter for using IIoT apps and digital services
Customers´ suppliers can also ...
27
3. STRATEGY
Globalization: High investments in network of locations – reinforcement of local activities
© Dürr AG, CCI,...
Criteria for major acquisitions:
Target areas: mechanical engineering, automation technology, measuring systems, environme...
29
3. STRATEGY
Service: Long-term target 30% of sales
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissinge...
42%
41%
17%
Modifications and
upgrades
Spare parts and
repairs
Maintenance,
assessments,
seminars
30
3. STRATEGY
Service
©...
Further globalization of Dürr processes
Global processes with full utilization of SAP/CAX/CRM/SharePoint
Global IT platfor...
32
AGENDA
1. Executive Summary
Our five divisions2.
Group strategy3.
Group financials, markets and outlook4.
© Dürr AG, CC...
33
4. EARNINGS ON THE RISE
Net income strongly increased
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissi...
34
4. STRONG CASH FLOW TO BE EXPECTED
Free cash flow doubled in 2016
© Dürr AG, CCI, Investor Relations Presentation, Biet...
35
4. SOLID FINANCIAL RATIOS
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
12/31/2...
36
Chinese production expected to reach more than 33 m by 2021
20.4 20.6 22.6
21.6 22.1
24.5
21.3 22.2
25.1
26.6 27.3
33.6...
37
4. TRADITIONAL OEMS WITH HIGH INVESTMENTS1
IN 2017 AND 2018
Capex mix could shift towards e-mobility, self-driving, con...
38
4. WOODWORKING MACHINERY MARKETS
Global automation trends might favor a higher growth for the HOMAG Group
© Dürr AG, CC...
39
4. DÜRR GROUP OUTLOOK 2017
Stable outlook despite Ecoclean deconsolidation; sales and incoming orders outlook conservat...
09/13/2017 UBS Best of Germany, New York
09/18/2017 Berenberg and Goldman Sachs Sixth German Corporate Conference, Munich
...
41© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
Appendix
42
NEW MANAGEMENT BOARD STRUCTURE
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
Dr...
43
KEY DATA OF THE SHARE
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
WKN / ISIN ...
25.3%
3.5%
71.2%1
Heinz u. Heide Dürr Stiftung
44
SHAREHOLDER STRUCTURE/DIVIDEND POLICY
© Dürr AG, CCI, Investor Relations...
45
SHARE PRICE DEVELOPMENT
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
Remarkabl...
46
DIVIDEND POLICY
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
Dividend policy: ...
47
ANALYSTS’ VIEW ON DÜRR
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
24 equity ...
48
FIXED INCOME
Key data Bond / Bonded loan („Schuldscheindarlehen”)
© Dürr AG, CCI, Investor Relations Presentation, Biet...
49
EQUITY STORY
Good reasons to be invested in Dürr
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen,...
50
VALUE MANAGEMENT
© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
The most importa...
INVESTOR RELATIONS PRESENTATION
Bietigheim-Bissingen, September 2017
www.durr.com
Corporate Communications & Investor Rela...
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Dürr IR Presentation

  1. 1. INVESTOR RELATIONS PRESENTATION Bietigheim-Bissingen, September 2017 www.durr.com Corporate Communications & Investor Relations Dürr AG
  2. 2. 2© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 DISCLAIMER This publication has been prepared independently by Dürr AG/Dürr group (“Dürr”). It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in Dürr´s disclosures, in particular in the chapter “Risks” in Dürr´s annual report. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of Dürr may vary materially from those described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Dürr neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). Dürr´s net assets, financial position and results of operations should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial metrics used at Dürr can be found in our financial glossary on the Dürr web page (http://www.durr.com/investor/service-faqs-glossar-contact/glossary/financial-glossary/).
  3. 3. 3 AGENDA 1. Executive Summary Our five divisions2. Group strategy3. Group financials, markets and outlook4. © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  4. 4. Worldwide leading supplier of efficient production technologies with outstanding digital expertise. Major customer groups: automotive, furniture and general industry Innovation leader driven by automation, digitization and networked production Highly cash generative; flexible production facilities with pronounced focus on NWC; strong ROCE Expanding service business with healthy margins and further growth potential Group structure with efficient processes; further growth via acquisitions. HOMAG can be seen as a blueprint for further acquisitions 4 1. EXECUTIVE SUMMARY © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  5. 5. Market shares between 30 and 60% in different machinery and engineering activities Strong emerging markets presence with 40-50% share of global incoming orders Share of current incoming orders: 55% automotive business, 45% general industry, e.g. furniture, machinery Net exposure to combustion engine technology negligible High entry barriers with limited number of competitors Business drivers: Greenfield: growing markets Brownfield: replacement potential Service: installed base Automation, digitization & networking 5 1. EXECUTIVE SUMMARY Dürr: global leader in strong competitive position © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Fast factsCustomers
  6. 6. 6 AGENDA 1. Executive Summary Our five divisions2. Group strategy3. Group financials, markets and outlook4. © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  7. 7. Paint and Final Assembly Systems • Incoming orders € 1,094 (1,126) m • Sales € 1,140 (1,365) m • EBIT € 77 (100) m • Operating EBIT € 82 (100) m • EBIT margin 6.8 (7.3) % • Operating EBIT margin 7.2 (7.3) % Application Technology • Incoming orders € 583 (538) m • Sales € 561 (600) m • EBIT € 76 (61) m • Operating EBIT € 59 (61) m • EBIT margin 13.6 (10.1) % • Operating EBIT margin 10.5 (10.1) % Clean Technology Systems • Incoming orders € 177 (166) m • Sales € 167 (159) m • EBIT € 6 (6) m • Operating EBIT € 6 (6) m • EBIT margin 3.7 (3.6) % • Operating EBIT margin 3.7 (3.6) % Measuring and Process Systems • Incoming orders € 683 (578) m • Sales € 624 (604) m • EBIT € 80 (70) m • Operating EBIT € 80 (70) m • EBIT margin 12.8 (11.6) % • Operating EBIT margin 12.8 (11.6) % Woodworking Machinery and Systems • Incoming orders € 1,165 (1,058) m • Sales € 1,082 (1,039) m • EBIT € 45 (37) m • Operating EBIT € 71 (63) m • EBIT margin 4.1 (3.5) % • Operating EBIT margin 6.6 (6.1) % 7 2. OUR FIVE DIVISIONS Divisional breakdown 2016 (2015) © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Dürr AG
  8. 8. 8 2. MARKET SHARE DÜRR/COMPETITORS1 © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Paint Dürr 50%, Eisenmann 10-15%, Taikisha/Geico 20% local competitors: AE, Giffin, Gallagher Kaiser, Trinity (Toyota) Final Assembly Dürr, Rofa, Scivic, Siemens, Eisenmann Paint and Final Assembly Systems Dürr ~50%, ABB ~20%, Fanuc ~15%, Yaskawa ~10%; local competitor: DoolimApplication Technology Dürr 40-50%2, John Zink/KEU 20%, CTP 10%Clean Technology Systems Dürr 31%, Biesse 12%, scm group 11%, Schelling/IMA 7%; local competitors: Nanxing, KTD Woodworking Machinery and Systems Balancing Dürr 46%, CEMB 16%, Kokusai 8% Filling Dürr 48%, Fives 16%, SAT 8% Testing Dürr 50%, Burke Porter Group 21%, Fori 10% Measuring and Process Systems 1 own estimates, average of last 3 years 2 market share relating to business with exhaust-gas purification systems for automotive paint shops
  9. 9. Turn-key paint shops for the automotive industry (OEMs, suppliers) Final assembly systems (e.g. conveyor equipment, control systems) Service and modernization of existing sites 9 2. PAINT AND FINAL ASSEMBLY SYSTEMS Paint shops and final assembly systems © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 1 including extraordinary expenses in connection with the closure of a smaller plant in Austria (€ 4.9 m) ²annualized in € m 2015 2016 2017e H1 2016 H1 2017 Incoming orders 1,126 1,094 1,000-1,150 676.0 645.7 Sales revenues 1,365 1,140 1,050-1,175 567.2 531.3 EBIT 100 771 - 38.0 30.4 EBIT margin 7.3% 6.8%1 6.0-6.5% 6.7% 5.7% ROCE >100% >100% >100% >100² >100²
  10. 10. High-tech systems and software for automated paint application, glueing processes and seam sealing (e.g. robots, atomizers, color change systems, quality assurance) Interior painting  automation potential Economic lifetime of paint robots: 10-12 years  replacement cycle just beginning Strong service potential (e.g. spare parts) due to increased installed base 10 2. APPLICATION TECHNOLOGY Paint application, glueing and sealing technology © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 1including extraordinary income of € 17 m ²including extraordinary income of € 5.1 m ³annualized Falls das Bild von der Auflösung zu schlecht ist, gäbe es noch ein mögliches Ersatzbild in € m 2015 2016 2017e H1 2016 H1 2017 Incoming orders 538 583 540-610 308.7 324.9 Sales revenues 600 561 540-610 263.0 286.0 EBIT 61 761 - 32.1² 29.2 EBIT margin 10.1% 13.6%1 9.5-11.0% 12.2%² 10.2% ROCE 32.3% 40.0%1 27-32% 28.6%³ 23.9%³
  11. 11. Application products: components & automated paint solutions Complete range of application products for general industry (e.g. plastics, wood, furniture, construction) Pre-installed and ready2spray robot system, jointly developed by Kuka and Dürr. Kuka will provide the compact robot and Dürr the paint application technology.  integrated solution is unique to the market. Target: € 50 m revenue by 2019 11 2. APPLICATION TECHNOLOGY Addressing new markets: General industry © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 31% 31% 23% 8% 7% Nordson Others Graco Finishing Brands Iwata Competition1 1 Market size ~ € 3 bn
  12. 12. 12 2. PAINT BUSINESS1 © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 BUSINESS DRIVERSTYPE Expansion of capacity in new and existing locations Replacement of old and non-productive plants Increased quality requirements especially in the emerging markets Efficiency enhancements: cost reductions (e.g. energy, material); cycle times Flexibility: addition of new models/facelifts to existing painting lines Automation: e.g. interior painting of vehicles Environmental regulation: stricter emissions laws Continuous demand: spare parts, upgrades, training Wear & tear of aging installed base: smaller modernizations and upgrades Greenfield Brownfield Service 1 Divisions Paint and Final Assembly Systems and Application Technology
  13. 13. Incoming orders increased by 75% within 8 years, mostly due to higher demand in brownfield & service business 13 2. PAINT BUSINESS1 Brownfield with growing importance © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 1 Divisions Paint and Final Assembly Systems and Application Technology 61% 15% 24% 44% 26% 30% Greenfield Brownfield Service 35% 35% 30% Incoming orders 2008: € 950 m Incoming orders 2016: € 1,677 m Incoming orders 2020e
  14. 14. Drivers: energy prices, regulation, environmental issues Customer split: 25% automotive; 25% chemistry, petrochemistry, pharmacy; 50% other industries Streamlining at loss making energy efficiency technologies started 14 2. CLEAN TECHNOLOGY SYSTEMS Exhaust air purification systems & energy efficiency systems © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € m 2015 2016 2017e H1 2016 H1 2017 Incoming orders 166 177 180-200 90.1 95.1 Sales revenues 159 167 175-195 75.4 86.1 EBIT 6 6 - 2.4 1.6 EBIT margin 3.6% 3.7% 4.0-4.5% 3.2% 1.9% ROCE 11.7% 13.6% 15-20% 9.0%1 5.4%1 ¹ annualized
  15. 15. High market shares in all businesses Positioned globally with a high degree of localization Strong footprint in China with local production, R&D etc. 15 2. MEASURING AND PROCESS SYSTEMS Highly profitable machinery niches with global presence © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 1 Ecoclean business was sold as of March 31, 2017. Ca. € 150m less orders and sales in FY 2017 vs. FY 2016 ²annualized in € m 2015 2016 2017e H1 2016 H1 2017 Incoming orders 578 683 400-5001 363.0 279.51 Sales revenues 604 624 450-5251 274.8 251.11 EBIT 70 80 - 27.3 29.11 EBIT margin 11.6% 12.8% 11.5- 14.0%1 9.9% 11.6%1 ROCE 24.6% 24.9% 20-25% 18.0%² 21.0%2
  16. 16. Filling Assembly & testing Balancing 16 2. MEASURING AND PROCESS SYSTEMS Three strongly performing machinery niche players Balancing of rotating parts and components for many manufacturing industries, service centers Filling of appliances (refrigerators, air conditioners and others) Filling automotive – end of line End of line assembly and testing equipment for the automotive industry © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  17. 17. Product range from stand-alone machines through to complete, automated production lines for efficient woodworking Major customers: Furniture industry, construction supplies and timber home construction Strong need for automation: Batch one production, fully digitized process from order to delivery 31% market share, biggest customer: IKEA (~ 5% of sales) 17 2. WOODWORKING MACHINERY AND SYSTEMS World market leader HOMAG Group acquired to capture automation trend in the industry © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € m 2015 2016 2017e H1 2016 H1 2017 Incoming orders 1,058 1,165 1,125-1,225 551.5 733.5 Sales revenues 1,039 1,082 1,100-1,150 526.6 596.7 EBIT 37 45 - 27.5 42.5 EBIT margin 3.5% 4.1% 6.0-7.0% 5.2% 7.1% ROCE 8.9% 11.3% 13-18% 12.3%1 22.9%1 ¹ annualized
  18. 18. 18 2. WOODWORKING MACHINERY AND SYSTEMS FOCUS program progressing well, targets conservative © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Growth Expansion China Expansion US Service initiative Project business Innovation program Global organization (“ONE HOMAG“) Process improvement ERP roll-outs Modular products Incentive systems Optimization Value creation program FOCUS Revenue: € 1.25 bn EBIT margin: 8-10% Lever Initiatives Targets 2020
  19. 19. 19 2. WOODWORKING MACHINERY AND SYSTEMS FOCUS 2017: Shifting gears from “Fix the house” to “Innovation” „Fix the house“ 2016/2017 Sustainable profitable growth 2018/2019 Optimize portfolio Standardization Efficiency improvement in functions and processes Develop system business ONE HOMAG Profitable system business Launching of the “Software House” Integration of complementary products Service excellence (8% growth p.a. expected) Innovation push Internationalization 2017/2018 Cross-business-unit innovation program Global footprint in production and engineering Localization of sales & service competences © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  20. 20. 20 AGENDA 1. Executive Summary Our five divisions2. Group strategy3. Group financials, markets and outlook4. © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  21. 21. 21 3. DÜRR STRATEGY 2020 © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Dürr strategy 2020 targets: up to € 5bn sales, 8-10% EBIT margin, >30% ROCE
  22. 22. 20% 8% 28%3% 41% Invest Energy Personnel Service Material 22 3. STRATEGY Innovation: R&D efforts focused on tangible customer value © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Cost per unit in a paint shop Ø cost per unit in a current paint shop = € 3201 1 Compared to € 420 15 years ago 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 kWh/unit Reduction of resource consumption/emissions in paint shops of a German OEM 0.0 0.5 1.0 1.5 2.0 m³/unit 0 0.5 1 1.5 2 2.5 3 3.5 kg/unit 0 1 2 3 4 5 6 l/unit Energy Paint²Water VOC -67% -71% -73% -36% 2 In spray booth only
  23. 23. • e.g. iTAC.IoT.Suite, HOMAG- tapio-platform, Human Robot Collaboration (HRC) • e.g. predictive maintenance, documentation/ maintenance via pad, internet, QR code • e.g. virtual commissioning, virtual engineering, additive manufacturing • e.g. on demand energy supply for ovens, smart pumps with reduced maintenance efforts Smart Products Smart Processes Smart Factories Smart Services 23 3. STRATEGY Innovation: Goal – Leading in digitization with 4 pillars © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  24. 24. 24 3. STRATEGY Innovation: digital@DÜRR © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Vision: leader in digitization, automation and networking in industrial production using intelligent products and services. Benefitting strongly from digitization and flexibilization in the industry. Both trends favor innovative and strong companies, offer differentiation potential vs. competitors and support consolidation of competitive environment digital@DÜRR consists of 4 major areas: smart products, smart services, smart processes and smart factories The IIoT platform ADAMOS and the digital market places LOXEO (Dürr/Schenck) and tapio (HOMAG) enable our customers to increase equipment availability and productivity
  25. 25. First IIoT platform especially for the mechanical/plant engineering sector Goal: Establish ADAMOS as industry standard Highly scalable IIoT services, on edge/on premise or via cloud Leading-edge technology + standard interfaces Founding partners ADAMOS GmbH: DMG Mori, Dürr, Software AG, Carl Zeiss, ASM Combined installed base: several hundreds of thousands of machines Further mechanical/plant engineering firms will join “White label" solution: ADAMOS allows for company-individual IIoT market places ADAMOS App Factory develops customized applications + services 25 3. STRATEGY Innovation: Industrial Internet of Things (IIoT) platform - First of its kind © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 ADAMOS: Adaptive Manufacturing Open Solutions ADAMOS gives Dürr a full line IIoT offering and reinforces our leading market position against pure software providers
  26. 26. LOXEO and tapio: market places our customers enter for using IIoT apps and digital services Customers´ suppliers can also take part and contribute information/data Brand continuity: LOXEO and tapio use Dürr/Schenck´s and HOMAG´s design customer loyalty Competitor machines can be connected, too Typical apps/services: performance monitoring, predictive maintenance, production planning, machine learning etc. ADAMOS App Factory: Full app pipeline high attractiveness 26 3. STRATEGY Innovation: 2 digital market places in the Dürr Group supported by © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Customer benefit of LOXEO and tapio: optimizing production, increasing system availability
  27. 27. 27 3. STRATEGY Globalization: High investments in network of locations – reinforcement of local activities © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € m 2012 2013 2014 2015 2016 Capex 32.5 51.2 54.9 102.3 81.9 Acquisitions 2.9 34.8 242.1 42.0 13.6 Total 35.4 86.0 297.0 144.3 95.5 Extension of global presence: Reinforcement of new markets but also investments in established markets of North America and Germany with good prospects 15 production, test and engineering centers: extended, modernized or newly built Campus concept transferred to key locations: more efficient processes, open communication and sustainable energy concept Capex spending in 2017: around € 80 m New Dürr Campus in Shanghai, China
  28. 28. Criteria for major acquisitions: Target areas: mechanical engineering, automation technology, measuring systems, environmental World market leadership, innovation leadership No restructuring cases but acquisition targets with earnings improvement and synergy potential Making use of Dürr‘s excellent positioning in global/emerging markets Corporate culture should fit Additional possible acquisitions: Bolt-on acquisitions in existing divisions Cross-functional technology acquisitions (e.g. software) 28 3. STRATEGY HOMAG takeover as a blueprint for larger acquisitions © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  29. 29. 29 3. STRATEGY Service: Long-term target 30% of sales © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 2008 … 2014 2015 2016 Sales revenues (in € m) 395.9 … 634.1 884.9 981.9 In % of group sales 24.7 … 24.6 23.5 27.5 Strengthening service business and capacities in emerging markets (e.g. China, India, Mexico) with disproportionately high potential Service pricing, dedicated offerings, complaint management system, decentralized ware-housing, delivery speed 2016: Service sales +11%, reaching 27.5% of total sales – despite group sales down 5% CAGR since 2008: 12%
  30. 30. 42% 41% 17% Modifications and upgrades Spare parts and repairs Maintenance, assessments, seminars 30 3. STRATEGY Service © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Service type in % of revenues 0 2,000 4,000 6,000 8,000 10,000 12,000 Number of paint robots sold (cumulative figure)
  31. 31. Further globalization of Dürr processes Global processes with full utilization of SAP/CAX/CRM/SharePoint Global IT platforms, integrated systems, one single database, continuous capex spending Expansion of sourcing offices and manufacturing in China, India, Mexico, Brazil Rigorous localization of Dürr products in the emerging markets Supplemental product portfolio with low-cost/low-end solutions; local added value Reduction of specifications Consistent portfolio optimization to improve profitability Aircraft assembly technology sold in 2014 French production facility sold in 2014 Austrian workshop closed in 2016 Small German HOMAG site closed in 2016 Cleaning machinery: sold in Q1 2017 31 3. STRATEGY Efficiency: Global processes, localization & portfolio optimization © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  32. 32. 32 AGENDA 1. Executive Summary Our five divisions2. Group strategy3. Group financials, markets and outlook4. © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017
  33. 33. 33 4. EARNINGS ON THE RISE Net income strongly increased © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € m 2014 2015 2016 H1 2016 H1 2017 Incoming orders 2,793.0 3,467.5 3,701.7 1,989.3 2,078.7 Sales 2,574.9 3,767.1 3,573.5 1,706.9 1,751.3 Orders on hand (end of period) 2,725.3 2,465.7 2,568.4 2,698.9 2,743.0 Gross profit on sales 591.1 828.0 858.3 408,0 421.0 Gross margin (%) 23.0 22.0 24.0 23.9 24.0 EBIT 220.9 267.8 271.4 119.0 144.2 EBIT before extraordinary effects 237.4 294.3 286.4 119.5 129.3 EBIT margin (%) 8.6 7.1 7.6 7.0 8.2 EBIT margin (%) before extraordinary effects 9.2 7.8 8.0 7.0 7.4 Net income 150.3 166.6 187.8 77.8 99.7
  34. 34. 34 4. STRONG CASH FLOW TO BE EXPECTED Free cash flow doubled in 2016 © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € m 2014 2015 2016 H1 2016 H1 2017 EBT 204.7 244.5 258.1 111.9 134.5 Other aggregated items of cash flow 12.3 66.3 2.9 -60.3 -43.7 Net working capital changes 74.3 -137.8 -33.6 -136.2 -131.6 Cash flow from operating activities 291.2 173.0 227.4 -84.6 -40.8 Interest -16.6 -10.4 -15.8 -15.5 -11.6 Capex -53.6 -99.8 -81.6 -38.4 -33.2 Free cash flow 221.1 62.8 129.9 -138.4 -85.7 NWC increase due to a slightly changed payment pattern of customers and normalization in prepayments 2017 cash flow should reach 2016 level
  35. 35. 35 4. SOLID FINANCIAL RATIOS © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 12/31/2013 12/31/2014 12/31/2015 12/31/2016 06/30/2017 Equity in € m 511.4 725.8 714.4 831.0 833.2 Equity ratio in % 25.7 24.4 23.9 24.8 25.5 Net financial status in € m 280.5 167.8 129.4 176.5 96.2 Net working capital in € m -33.1 87.6 236.8 194.4 328.9 DWC (days working capital) -4.9 12.2 22.9 27.2 34.7 ROCE in % 76.2 38.7 45.3 41.1 36.41 Equity ratio increased to 25.5% in H1 2017; equity ratio of 30% as long-term goal Net financial status expected to reach around € 300 m at year end 2017 ROCE for FY 2017 should stay in our target range of 30-40% 1 annualized
  36. 36. 36 Chinese production expected to reach more than 33 m by 2021 20.4 20.6 22.6 21.6 22.1 24.5 21.3 22.2 25.1 26.6 27.3 33.6 2.3 2.5 3.2 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2016 2017 2021 Others China Asia (w/o China) Europe Americas 1 Light vehicles production Source: PwC, Autofacts Last update: Juli 2017 Ʃ 92.2 Ʃ 94.7 Ʃ 109.0 +9% +3% +4% +2% +2% +6% +5% +3% +3% +4% +3% CAGR 4. FURTHER GROWTH IN THE CAR MARKET © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in m units1 +1%
  37. 37. 37 4. TRADITIONAL OEMS WITH HIGH INVESTMENTS1 IN 2017 AND 2018 Capex mix could shift towards e-mobility, self-driving, connected cars © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € bn 2012 2013 2014 2015 2016 2017e 2018e BMW 5.0 6.6 6.0 5.8 5.7 6.3 6.9 Daimler 6.4 6.7 6.1 6.8 8.4 10.0 9.5 FCA 5.4 5.5 5.9 6.7 6.3 6.4 6.8 Ford 4.2 5.1 5.7 6.2 6.4 6.5 7.0 GM 6.2 6.2 5.4 6.7 8.7 8.3 7.4 Renault 1.9 2.5 2.4 2.7 2.0 3.3 3.5 PSA 1.9 2.2 2.2 2.8 3.3 3.9 4.9 VW 12.9 15.1 16.1 17.8 18.5 18.8 18.1 Total 43.9 49.9 49.8 55.5 59.3 63.5 64.1 1 Capex spending incl. capitalized R&D, Source: Deutsche Bank
  38. 38. 38 4. WOODWORKING MACHINERY MARKETS Global automation trends might favor a higher growth for the HOMAG Group © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 315 326 338 351 2014 2015 2016 2017 +3.7% p.a. 1.3 1.3 1.4 1.4 1.5 1.5 2014 2015 2016 2017 2018 2019 +3.3% p.a. 210 215 222 229 235 2016 2017 2018 2019 2020 +2.9% p.a. Furniture (share of sales 83%) Global furniture production Construction elements (share of sales 14%) European construction market Wooden houses (share of sales 3%) Timber construction in € bn Source: CSIL Furniture production, Inomis Database, Holzbauverband
  39. 39. 39 4. DÜRR GROUP OUTLOOK 2017 Stable outlook despite Ecoclean deconsolidation; sales and incoming orders outlook conservative 0 5 10 15 20 25 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2009 2010 2011 2012 2013 2014 2015 2016 2017e Sales Incoming orders Gross margin (in %) EBIT margin (in %) © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 in € m 1) Including book gain Ecoclean sale, without book gain: 6.80 - 7.55% 3,400- 3,600 3,300- 3,700 7.51 - 8.25
  40. 40. 09/13/2017 UBS Best of Germany, New York 09/18/2017 Berenberg and Goldman Sachs Sixth German Corporate Conference, Munich 09/19/2017 Baader Investment Conference 2017, Munich 10/04/2017 Deutsche Bank Small & Mid Cap Conference, London 10/04/2017 Berenberg Italian Seminar 2017, Milano 10/18/2017 Capital Markets Day, Darmstadt 11/08/2017 Interim statement for the first nine months of 2017 11/14/2017 UBS European Conference 2017, London 40 4. FINANCIAL CALENDAR © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Günter Dielmann  guenter.dielmann@durr.com  +49 7142 78-1785 Stefan Tobias Burkhardt  stefantobias.burkhardt@durr.com  +49 7142 78-3558 Mathias Christen  mathias.christen@durr.com  +49 7142 78-1381 Dürr Corporate Communications & Investor Relations Contact
  41. 41. 41© Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Appendix
  42. 42. 42 NEW MANAGEMENT BOARD STRUCTURE © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Dr. Jochen Weyrauch Member of the Board  Measuring and Process Systems  Clean Technology Systems  Information Technology  Corporate Development (including M&A) Carlo Crosetto CFO  Finance / Controlling  Investor Relations  Risk Management  Legal Affairs / Patents  Global Sourcing  Corporate Social Responsibility Ralf W. Dieter CEO  Paint and Final Assembly Systems  Woodworking Machinery and Systems  Application Technology  Public Relations  Human Resources  Research and Development  Quality  Internal Auditing  Corporate Compliance
  43. 43. 43 KEY DATA OF THE SHARE © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 WKN / ISIN 556 520 / DE0005565204 Bloomberg / Reuters Due / dueg Class of shares Common bearer shares Index Category e.g. MDAX (Performance); CDAX (Performance); FAZ Index, Stoxx 600 Trading centers / stock exchange Stuttgart (regulated market) Frankfurt (regulated market) Several open markets Capital stock € 88.6 million Designated Sponsor Oddo Seydler Number of shares 34,601,040 Market capitalization as of 2017/07/19 € 3,592 m
  44. 44. 25.3% 3.5% 71.2%1 Heinz u. Heide Dürr Stiftung 44 SHAREHOLDER STRUCTURE/DIVIDEND POLICY © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Free float at 71.2%1 Institutional and private investors • Thereof the Goldman Sachs Group: 5.1%2 • Thereof Deutsche Bank AG: 4.7%2 • Thereof Morgan Stanley: 4.0%2 • Thereof Deutsche Asset Management: 3.2%2 • Thereof Alecta Pensionsförsäkring: 3.2%2 • Thereof AXA S.A.: 3.0%2 • Thereof Dürr Board of Management: 0.2%2 Heinz Dürr GmbH 1 Free float calculated according to Deutsche Börse AG 2 According to the relevant laws
  45. 45. 45 SHARE PRICE DEVELOPMENT © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Remarkable long-term outperformance compared to DAX & MDAX Dürr highly benefited from China boom due to its strong emerging markets presence HOMAG takeover in 2014 took some time to be understood, but then levered the Dürr share. In 2015, China fears impacted the stock markets and Dürr, too. Skeptical view on Dürr in early 2016 changed with strong quarterly results Digitization as further value driver 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 2010 2011 2012 2013 2014 2015 2016 2017 Dürr indexed DAX indexed MDAX indexed 103.80 € 19/07/17
  46. 46. 46 DIVIDEND POLICY © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Dividend policy: 30-40% payout ratio 0.00 € 0.15 € 0.60 € 1.13 € 1.45 € 1.65 € 1.85 € 2.10 € 2009 2010 2011 2012 2013 2014 2015 2016 in € 2016 2015 2014 2013 2012 2011 2010 2009 Earnings per share 5.26 4.67 4.33 4.05 3.10 1.79 0.19 -0.78 Dividend per share 2.10 1.85 1.65 1.45 1.13 0.60 0.15 0.00 Total payout 72.7m 64.0m 57.1m 50.2m 38.9m 20.8m 5.2m 0.0m Payout ratio 39% 38% 38% 38% 35% 32% 32% - Share buy-back approval on annual shareholder meeting 2016, possible in 2018
  47. 47. 47 ANALYSTS’ VIEW ON DÜRR © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 24 equity research analysts cover Dürr ø Target Price: 98.05 € as of July 18, 2017 Range of targets between 62 and 126 € 86% recommend to buy or hold the Dürr share 68% 14% 18% Buy Hold Sell
  48. 48. 48 FIXED INCOME Key data Bond / Bonded loan („Schuldscheindarlehen”) © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 Bond Bonded loan („Schuldscheindarlehen”) WKN / ISIN A1YC44 / XS1048589458 - Issued volume EUR 300 million EUR 300 million Coupon 2.875% 1.6% in average Maturity / Repayment April 3, 20211 5, 7, 10 years (issued March 2016) Nominal value EUR 1,000.00 - Stock exchange / listing regulated market Luxembourg Stock Exchange, unofficial trading German stock exchanges - Rating Since 2010 it does exist neither a company rating nor a bond rating - Syndicated loan held by Dürr AG for € 465 million Real estate loan for the purchase of the Dürr Campus in Bietigheim-Bissingen (2011) with a carrying amount of € 34.3 m Bilateral credit facilities of a smaller volume and liabilities from finance leases
  49. 49. 49 EQUITY STORY Good reasons to be invested in Dürr © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 World market leadership: In ~95% of its product portfolio with market shares between 30 and 60%  high entry barriers Service potential: Increased installed base is starting point for a growing and profitable service business. Market positioning: About 40-50% of the business volume from emerging markets. Best positioned in competition. Growth: Organic growth expected at ~3% p.a.. Further acquisitions should contribute to the expansion. Technology leader: Dürr enables customers to reduce costs per units and thus to increase production efficiency. Industry 4.0 / smart factory: Leading due to intelligent solutions (e.g. ADAMOS, MES) Value creation: ROCE exceeds cost of capital significantly – ROCE 2016 at 41.1%, cost of capital 2016 at 7.2%. Continuity: Continuous improvement of earnings since 2010; 6th consecutive record year with steady increase of dividend.
  50. 50. 50 VALUE MANAGEMENT © Dürr AG, CCI, Investor Relations Presentation, Bietigheim-Bissingen, September 2017 The most important performance indicators at Dürr: Incoming orders Sales EBIT ROCE (EBIT/Capital employed). Cash flow from operating activities Free cash flow Economic Value Added (EVA) Also non-financial performance indicators tracked, e.g. Employee and customer satisfaction Training/education Ecology/sustainability R&D/innovation Key figures FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 Incoming orders 701.7 3,467.5 2,793.0 2,387.1 2,596.8 Sales revenues 3,573.5 3,767.1 2,574.9 2,406.9 2,399.8 EBIT 271.4 267.8 220.9 203.0 176.9 Operating cash flow 227.4 173.0 291.3 329.1 117.6 Free cash flow 129.9 62.8 221.1 261.9 65.9 ROCE 41.1 45.3 38.7 76.2 47.4 EVA 142.5 146.2 121.6 124.3 99.3
  51. 51. INVESTOR RELATIONS PRESENTATION Bietigheim-Bissingen, September 2017 www.durr.com Corporate Communications & Investor Relations Dürr AG

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